Ford Motor Co. displays its Bronco Sport Sasquatch SUV before media day of the 2025 Detroit Auto Show at Huntington Place in Detroit, Michigan, U.S. January 9, 2025. REUTERS/Rebecca Cook/File Photo Purchase Licensing Rights, opens new tab
- Companies
- Ford Motor Co
- Stellantis NVSee AlsoEric Olen Named Head Coach of Lobo Men’s BasketballJudge castigates Trump administration for 'bad faith' in Abrego Garcia's deportation caseDow closes more than 200 points higher ahead of Trump’s tariff rollout: Live updatesAppeals court clears the way for Trump to fire probationary federal workers once again
- General Motors Co
DETROIT, April 10 (Reuters) - A new analysis by the Center for Automotive Research has found that President Donald Trump's 25% auto tariffs imposed in early April will increase costs by about $108 billion for automakers in the U.S. in 2025.
The study, released on Thursday by the Ann Arbor, Michigan-based organization, found Detroit automakers Ford Motor
(F.N), opens new tab, General Motors
(GM.N), opens new taband Stellantis
(STLAM.MI), opens new tab, maker of Jeeps and Ram trucks, specifically will see increased costs of $42 billion. The study found the Detroit Three could see tariffs of nearly $5,000 for the parts they import on average for each car produced in the U.S., and about $8,600 on average for each car they import.
Sign up here.
Trump’s 25% automotive import tariffs took effect April 3, causing shock waves across the industry since supplies come from all over the world. Vehicles made in Mexico and Canada face the levy, but automakers compliant with the terms of the U.S.-Mexico-Canada Agreement can deduct the value of U.S. content.
The tariffs have pushed automakers to make production changes, with GM increasing truck output at an Indiana plant and Stellantis temporarily shutting down production at a plant in Mexico and one in Canada. These moves affected five U.S. facilities that are connected to them.
The study estimates the Detroit Three automakers will see an average cost of the tariff per vehicle for imported vehicle parts of $4,911, higher than the overall industry's average of $4,239 per vehicle.
For imported vehicles, the study found the average tariff cost per vehicle to be $8,722 for the overall industry and $8,641 for the Detroit Three.
Matt Blunt, president of the American Automotive Policy Council, representing the Detroit Three automakers, said in a statement that the study "demonstrates the significant cost a 25 percent tariff will have on the automotive industry. American Automakers Ford, GM, and Stellantis intend to maintain our ongoing dialogue with the administration to achieve our shared goal of increased U.S. automotive production."
GM and Stellantis deferred to the trade group's comment and Ford was not immediately available.
Reporting by Kalea Hall; Editing by David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kalea Hall
Thomson Reuters
Kalea Hall reports on the automotive industry, focusing on the Detroit Three automakers, from Detroit. Kalea was previously an automotive reporter at The Detroit News daily newspaper where she covered the auto industry and General Motors for more than five years. She’s been a professional reporter since 2013, when she started at The Vindicator, a daily newspaper in Youngstown, Ohio and her hometown paper. Growing up in an auto plant town inspired Kalea to deeply understand the industry, and helped her report award-winning stories for The Vindicator. At The Detroit News, she worked collaboratively with a team to break news and write comprehensive pieces. Kalea has a bachelor’s degree in journalism from Point Park University in Pittsburgh and a master’s degree in journalism from Michigan State University.
